ISTANBUL — June 18, 2025 — Mustafa Gültepe: The Customs Union, in its current form, restricts rather than supports our cooperation. We hope that the ongoing technical negotiations will be completed soon. Because we know that lasting competitive advantage in the EU market is only possible with the full modernization of the Customs Union.
Mustafa Gültepe, Chairman of the Turkish Exporters Assembly (TİM), stated that the Customs Union Agreement between the European Union (EU) and Turkey, in its current form, has a more restrictive effect rather than supporting cooperation between the parties.
Gültepe, who also serves as the chairman of the Istanbul Ready-to-Wear and Apparel Exporters’ Association (İHKİB), emphasized that lasting competitive advantage in the EU market is only possible through the full modernization of the Customs Union.
The meeting titled “The Transformation Journey of the Turkish Ready-to-Wear Industry,” organized by İHKİB, brought together exporters, international brands, sector professionals, and experts. Speaking at the opening of the meeting, Mustafa Gültepe stressed that ready-to-wear, with its value-added production, employment, and exports, is one of Turkey’s most critical sectors. Highlighting that the EU is a strategic market for the Turkish ready-to-wear sector, Gültepe continued:
TURKEY SHOULD BE INCLUDED IN THE EU’S FREE TRADE AGREEMENTS WITH THIRD COUNTRIES
“Approximately 70% of our ready-to-wear exports go to Europe. We are very strong in many European markets, especially Germany, Spain, and the Netherlands. Our strategic advantage of close sourcing further supports our strong position. We know that in the medium and long term, these advantages alone will not suffice. With this awareness, we want to rapidly complete the digital and green transformation, the so-called twin transformation.
We are effectively utilizing EU funds for this transformation. For our completed and ongoing projects, we have secured a total grant support of 37 million euros from the EU. Today, in terms of recycling, carbon footprint reduction, digitalization, and social compliance, we have reached or even surpassed European standards in some areas. I have no doubt that we will successfully complete the twin transformation.
However, I want to emphasize that the Customs Union, in its current form, restricts rather than supports our cooperation. We hope that the ongoing technical negotiations will be completed soon. Because we know that lasting competitive advantage in the EU market is only possible through the full modernization of the Customs Union.
Therefore, the Customs Union must be updated in line with changing economic paradigms. Additionally, we consider it important and propose that Turkey be included in the EU’s free trade agreements with third countries to enable trilateral cumulation.”
WE ARE THE MOST RELIABLE REPRESENTATIVE OF THE CLOSE SOURCING MODEL
Recalling the increasing uncertainties in global trade, Mustafa Gültepe pointed out that tensions have escalated due to the long-standing conflict between Israel and Iran turning into clashes. He emphasized that protectionist trade policies cause disruptions in global value chains and said:
“Protectionist measures not only target specific countries but also negatively impact all suppliers through cost pressures and strategic uncertainty. Unpredictable policy changes threaten the financial sustainability of ready-to-wear producers. In a period where uncertainties have increased so much, fast, flexible, and efficient production becomes strategically important.
At this point, the Turkish ready-to-wear industry stands out as a strategic solution partner. With our proximity to Europe, strong logistics infrastructure, quality production, and rapid adaptation to environmental regulations, we are the most reliable representative of the close sourcing model. From fabric to accessories, from dyeing to sewing, we have a strong infrastructure at every stage.
This capacity means shorter lead times, flexible production, lower carbon emissions, and faster delivery to consumers. As İHKİB, we support this process with our Digital Transformation Center, Ecotex Laboratory, Istanbul Fashion Academy, and İHKİB Education Academy. Last month, we launched our Midas Project, funded by the EU under the European Digital Innovation Hubs (EDIH) Network. Through this project, we will provide SMEs with the infrastructure needed for the twin transformation.”
BUYERS SHOULD FOCUS ON LONG-TERM, VALUE-BASED PARTNERSHIPS RATHER THAN SHORT-TERM PRICE COMPETITION
Mustafa Gültepe also stressed that the transformation journey requires not only vision but also shared responsibility, joint action, and investment. Highlighting the important roles of all stakeholders in this process, Gültepe said, “It is crucial that the public sector encourages transformation investments that will accelerate modernization, that international buyers focus on long-term and value-based partnerships instead of short-term price competition, that financial institutions prioritize the sector in sustainability-based loans, and that testing and verification organizations provide guidance consistent with realities in the field.”
IAF CHAIRMAN ALTAN: THE TURKISH READY-TO-WEAR SECTOR HAS ENTERED A COMPREHENSIVE TRANSFORMATION PROCESS
Cem Altan, President of the International Apparel Federation (IAF), also mentioned in his speech that the Turkish ready-to-wear sector has entered a comprehensive transformation process aligned with global sustainability standards and the EU Green Deal’s strategic vision. Emphasizing that the event titled “The Transformation Journey of the Turkish Ready-to-Wear Sector” is part of this transformation, Altan said, “This event, which brings together policymakers, international brands, sector professionals, and experts, aims to accelerate the alignment of Turkey’s ready-to-wear ecosystem with the EU’s green and digital transformation goals. The event will herald a new era focused on sustainable growth for the sector.”
EURATEX PRESIDENT MACHADO: THE MODERNIZATION PROCESS OF THE CUSTOMS UNION MUST BE INITIATED
Mario Jorge Machado, President of the European Apparel and Textile Confederation (EURATEX), highlighted in his speech that global trade is facing fragmentation and uncertainty. Machado stated, “In this uncertain environment, the EU and Turkey can offer the world a different model based on strategic resilience, sustainable innovation, and shared prosperity. Let’s seize this opportunity to build a stronger future. As EURATEX, we call for the rapid initiation of the Customs Union modernization process to unlock the full potential of cooperation in our sector between the EU and Turkey.”
AAFA PRESIDENT LAMAR: TURKEY HAS STRONG PARTNERSHIPS WITH AMERICAN BRANDS
Steve Lamar, President of the American Apparel & Footwear Association (AAFA), who participated remotely, emphasized Turkey’s strong industrial infrastructure and manufacturing capabilities, along with its quality production and proximity to European markets. Reminding that Turkey also has strong partnerships with American brands, Lamar said, “As we all seek predictability amid uncertainties in the coming months and years, I believe Turkey will successfully leverage these strengths. Brands and retailers want fewer but more reliable partners with similar values, and with the right approach, there is every reason to believe that the Turkish industry will be part of this transformation journey.”
Posted: June 18, 2025
Source: IHKIB — The Istanbul Apparel Exporters’ Association